Question

PreviousProblem ListNext(1 point)emsIf you borrow $49000 at a fixed annual interest rate of 9.1% annual interest and pay it back in equal monthly payments for 9 years, thenthe formula says that your payment amount isPA (5)1-(1+)-nitwhere (fill in the blanks):A=r=(round to four decimal places).na, andt =Note: You can earn partial credit on this problem2:43 PM

Answer 1

We have the following formula:

$P=\frac{A\cdot(\frac{r}{n})}{1-(1+\frac{r}{n})^{-n\cdot t}}.$

Where:

• A = the money borrowed,

,

• r = the annual interest rate in decimals,

,

• n = the number of annual payments,

,

• t = the number of years.

In this problem, we have:

• A = $49000,

,

• r = 9.1% = 9.1/100 = 0.091,

,

• n = 12 (we have monthly payments),

,

• t = 9 years.

Answer

• A = 49000

,

• r = 0.091

,

• n = 12

,

• t = 9